Indonesian Furniture Industry Nervous About US Tariff Delay

Jakarta, Xweb.biz.id – Indonesian furniture and craft businesses are worried about the US tariff policy introduced by President Donald Trump, as it might mess up the industry’s performance.

Abdul Sobur, the Chairman of HIMKI, said that the US is a huge export market for Indonesia, with 53% of Indonesia’s furniture and craft products going to the US.

Tariff Policy Delay

The US has set a 32% tariff on Indonesian products, which was supposed to take effect on April 9, 2025, but now the implementation has been postponed for a few months. Sobur noted that such a high tariff would cause serious problems for the Indonesian furniture and craft sector, given how much the industry relies on exports to the US.

“It’s a huge deal. If this tariff goes through, it will disrupt everything,” Sobur said at a Corporate Insight event on Friday.

Even though the tariff has been delayed, it’s already affected business. Sobur mentioned that US buyers are holding off on orders from Indonesia, leading to products piling up in warehouses, which is causing cash flow issues for local businesses.

“We’ve been pushing US buyers to accept their orders as soon as possible to avoid more goods stacking up in our warehouses,” Sobur added.

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Uncertainty in the Market

Despite the delay, the uncertainty caused by the tariff announcement has led to delays in shipments and a backlog at factories.

“This has created an unexpected escalation. We’ve had to deal with delays in shipments, and now goods are building up at the factories,” Sobur explained, saying that buyers are hesitant to move forward until the situation stabilizes.

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